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Voluntarily give up to get an extra pear

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Reference no: EM131218338

Inez reports that an extra banana would increase her utility by two units and an extra pear would increase her utility by six units. What is her MRS of bananas for pears-that is, how many bananas would she voluntarily give up to get an extra pear? Would Philip (who reports that an extra banana yields 100 units of utility, whereas an extra pear yields 400 units of utility) be willing to trade a pear to Inez at her voluntary MRS?

Reference no: EM131218338

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